Moneylenders 1 LAWS OF MALAYSIA REPRINT. Act 400 MONEYLENDERS ACT Incorporating all amendments up to 1 January 2006

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1 Moneylenders 1 LAWS OF MALAYSIA REPRINT Act 400 MONEYLENDERS ACT 1951 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006

2 2 MONEYLENDERS ACT 1951 First enacted (Ord. No. 42 of 1951) Revised 1989 (Act 400 w.e.f 14 December 1989) PREVIOUS REPRINT First Reprint

3 3 LAWS OF MALAYSIA Act 400 MONEYLENDERS ACT 1951 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and application 2. Interpretation 2A. Non-application of Act and exemption therefrom 3. (Deleted) 4. Appointment of Registrar, Deputy Registrar, Inspector, and other officers and servants 4A. Delegation of powers of Registrar PART II LICENSING OF MONEYLENDERS 5. Licence to be taken out by moneylender 5A. Application for licence 5B. Grant of a licence 5C. Duration of licence 5D. Conditions attached to licence 5E. Renewal of licence 5F. Requirement to display licence 6. Particulars to be shown on licences 7. (Deleted) 8. Offences

4 4 Laws of Malaysia ACT 400 Section 9. Circumstances under which licence shall not be issued 9A. Revocation or suspension of licence 9B. Opportunity of being heard 9C. Appeal to Minister 9D. Validity of licence extended in successful appeal 9E. Prohibition of subsequent application pending appeal on earlier application 9F. Surrender of licence 9G. Transfer or assignment of licence prohibited 10. (Deleted) PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST 10A. Powers of Inspector or police officer in investigation 10B. Power to investigate complaints and inquire into information 10C. Power to examine persons 10D. Search by warrant 10E. Power of arrest 10F. Search without warrant 10G. Seizure of movable property 10H. Further provisions relating to seizure of movable property 10I. Obstruction of inspection and search 10J. Authority to act 10K. Release of property seized PART IV EVIDENCE 10L. Evidence of accomplice and agent provocateur 10M. Protection of informers and information 10N. Admissibility of statements by accused persons 10O. Provisions as to evidence

5 Moneylenders 5 PART V CONDUCT OF MONEYLENDING BUSINESS Section 10P. Moneylender and borrower must enter into a moneylending agreement 11. Advertisement by moneylender 11A. Application for advertisement permit 12. No circular implying a banking business to be issued 13. (Deleted) 14. (Deleted) 15. Contract by unlicensed moneylender unenforceable 16. Moneylending agreement to be given to the borrower 17. Prohibition of compound interest 17A. Interest for secured and unsecured loans 18. Accounts to be kept in permanent books 19. Obligation to supply information as to state of loan and copies of documents relating thereto 20. Provisions as to bankruptcy proceedings for moneylenders loans 21. Accounts under section 19 to be produced when suing in court 22. (Deleted) 23. Prohibition of charge for expenses on loans by moneylender 24. (Deleted) 25. Notice and information to be given on assignment of moneylender s debts 26. Application of Act as respects assignees PART VI MISCELLANEOUS 27. Attestation of moneylending agreement 28. (Deleted) 29. False statements or representations to induce borrowing an offence 29A. General offences 29B. Harassment or intimidation, etc. of borrower 29C. Offences by companies, societies, firms or other body of persons 29D. Prosecution

6 6 Laws of Malaysia ACT 400 Section 29E. Service of notification or document 29F. Power to compound 29G. Jurisdiction 29H. Power to make regulations 30. (Deleted) 30A. (Deleted) 31. (Omitted) FIRST SCHEDULE SECOND SCHEDULE (Deleted) THIRD SCHEDULE (Omitted)

7 Moneylenders 7 LAWS OF MALAYSIA Act 400 MONEYLENDERS ACT 1951 An Act for the regulation and control of the business of moneylending, the protection of borrowers of the monies lent in the course of such business, and matters connected therewith. [Peninsular Malaysia 31 March 1952, L.N. 79/1952] PART I Short title and application PRELIMINARY 1. (1) This Act may be cited as the Moneylenders Act (2) This Act shall apply to the States of *Peninsular Malaysia only. Interpretation 2. In this Act, unless the context otherwise requires authorized name and authorized address mean respectively the name under which and the address at which a moneylender is authorized by a licence granted under this Act to carry on business as a moneylender; borrower means a person to whom money is lent by a moneylender; company means any body corporate being a moneylender; *NOTE All references to West Malaysia shall be construed as reference to Peninsular Malaysia see the Interpretation (Amendment) Act 1997 [Act A996], subsection 5(2).

8 8 Laws of Malaysia ACT 400 Deputy Registrar means the Deputy Registrar of Moneylenders appointed under section 4; firm means an unincorporated body of two or more individuals or one or more individuals and one or more corporations or two or more corporations who have entered into partnership with one another with a view to carrying on business for profit; Inspector means an Inspector of Moneylenders appointed under section 4; interest does not include any sum lawfully charged in accordance with this Act by a moneylender for or on account of stamp duties, fees payable by law and legal costs but, save as aforesaid, includes any amount by whatsoever name called in excess of the principal paid or payable to a moneylender in consideration of or otherwise in respect of a loan; licence means a moneylender s licence issued under this Act; Minister means the Minister charged with the responsibility for local government; moneylender means any person who lends a sum of money to a borrower in consideration of a larger sum being repaid to him; moneylending agreement means an agreement made in writing between a moneylender and a borrower for the repayment, in lump sum or instalments, of money borrowed by the borrower from the moneylender; police officer means a senior police officer as defined in the Police Act 1967 [Act 344]; prescribed means prescribed by regulations made under this Act; principal means, in relation to a loan, the amount actually lent to and received by the borrower; Registrar means the Registrar of Moneylenders appointed under this Act.

9 Moneylenders 9 Non-application of Act and exemption therefrom 2A. (1) This Act shall not apply to (a) any authority or body established, appointed or constituted by any written law, including any local authority; (b) any co-operative society registered under the *Co-operative Societies Act 1993 [Act 502]; (c) any bank or merchant bank licensed under the Banking and Financial Institutions Act 1989 [Act 372] or any bank licensed under the Islamic Banking Act 1983 [Act 276]; (d) any insurance company licensed under the **Insurance Act 1996 [Act 553]; (e) any company licensed under the Takaful Act 1984 [Act 312]; (f) any pawnbroker licensed under the Pawnbrokers Act 1972 [Act 81]; (fa) a development financial institution prescribed under the Development Financial Institutions Act 2001 [Act 618]; and (g) any licensed finance company as defined in subsection 2(1) of the Banking and Financial Institutions Act (h) (Deleted by Act A1193). (2) The Minister may (a) in consideration of the special circumstances relating to the nature of the business of any company, or the objects of any society, and its financial standing; and (b) if he is satisfied that it would not be contrary to the public interest to do so, by notification in the Gazette exempt such company or society from all or any of the provisions of this Act, and such exemption shall be granted for such duration as may be specified in the notification, and may be made subject to such limitations, restrictions or conditions as the Minister may specify in the notification. *NOTE This Act has replaced the Co-operative Societies Act 1948 [Act 287] see section 95 of Act 502. **NOTE This Act has replaced the Insurance Act 1963 [Act 89] see subsection 214(1) of Act 553.

10 10 Laws of Malaysia ACT 400 (3) The Minister may at any time revoke any exemption granted by him under subsection (2) if he is satisfied, after giving the company or society concerned an opportunity to be heard, that the company or the society, as the case may be, has failed to observe any limitation, restriction or condition subject to which the exemption was granted, or that it is otherwise no longer suitable to continue to be granted exemption. 3. (Deleted by Act A1193). Appointment of Registrar, Deputy Registrar, Inspector, and other officers and servants *4. (1) For the purposes of this Act, the Minister may appoint a Registrar of Moneylenders and such number of Deputy Registrars of Moneylenders, Inspectors of Moneylenders and other officers and servants as the Minister may deem fit from amongst members of the public service. (2) The Registrar and Deputy Registrars shall have and may exercise any of the powers conferred on an Inspector by or under this Act. Delegation of powers of Registrar 4A. (1) The Registrar may, in writing, delegate all or any of his powers or functions under this Act, except his power of delegation, to any Deputy Registrar or Inspector appointed under section 4. (2) Without prejudice to subsection (1), the Registrar may, in writing, delegate any of his powers or functions under this Act in respect of the investigation of offences under this Act and the enforcement of the provisions of this Act to any public officer. (3) Any delegation under subsection (1) or (2) may be revoked at any time by the Registrar and does not prohibit the Registrar from himself exercising the powers or performing the functions so delegated. *NOTE For saving and transitional provision of this section see subsections 46(1), (8) and (9) of Act A1193.

11 Moneylenders 11 PART II LICENSING OF MONEYLENDERS Licence to be taken out by moneylender 5. (1) No person shall conduct business as a moneylender unless he is licensed under this Act. (2) Any person who carries on business as a moneylender without a valid licence, or who continues to carry on such business after his licence has expired or been suspended or revoked shall be guilty of an offence under this Act and shall be liable to a fine of not less than twenty thousand ringgit but not more than one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both, and in the case of a second or subsequent offence shall also be liable to whipping in addition to such punishment. Application for licence *5A. (1) An application for a licence to carry on business as a moneylender shall be made in writing to the Registrar in a prescribed form, and accompanied by such documents or information as may be prescribed. (2) The Registrar may in writing, at any time after receiving the application but before it is determined, require the applicant to provide within a specified time or any extension of time granted by the Registrar, such additional documents or information as may be considered necessary by the Registrar for the purpose of determining the suitability of the applicant for the licence. (3) Where any additional documents or information required under subsection (2) is not provided by the applicant within the time specified in the requirement or any extension of time granted by the Registrar, the application shall be deemed to be withdrawn and shall not be further proceeded with. (4) Without prejudice to subsection (3), the applicant may submit a fresh application for a licence to the Registrar, but such application shall not be made while his application for a licence is still pending before the Registrar. *NOTE For saving and transitional provisions of this section see subsection 46(3) of Act A1193.

12 12 Laws of Malaysia ACT 400 Grant of a licence 5B. (1) Notwithstanding subsection 5A(2) or (3), the Registrar may, upon receiving an application for a licence under subsection 5A(1), grant or refuse to grant the licence to the applicant, and the Registrar shall inform the applicant of his decision. (2) The licence shall be in such form as may be prescribed. *(3) The applicant shall pay the prescribed application fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the licence. Duration of licence 5C. (1) Subject to section 9D and subsection (3), a licence shall, unless sooner revoked, be valid for a period not exceeding two years. (2) Where a licence is granted, the Registrar shall specify in the licence the date on which the licence is to come into force and the date of its expiry. (3) Where on the date of expiry of the licence, an application for the renewal of the licence under section 5E is pending before the Registrar, that licence shall remain in force until the application is disposed of, or sixty days after the date of expiry of the licence, whichever is the earlier. Conditions attached to licence 5D. (1) The Registrar may stipulate in the licence such conditions as he may think fit and he may, at any time during the duration of the licence, add to, revoke or vary any of the conditions. (2) Any person who fails to comply with any of the conditions of the licence shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. *NOTE For saving and transitional provisions of this subsection see subsection 46(4) of Act A1193.

13 Moneylenders 13 Renewal of licence *5E. (1) An application for the renewal of a licence shall be made by the holder of the licence at least sixty days before the date of expiry of the licence, and the application shall be accompanied by such documents and information as may be required by the Registrar. (2) Notwithstanding subsection (1), the Registrar may, subject to the payment of a penalty not exceeding three hundred ringgit imposed on the holder of the licence, allow an application for the renewal of a licence made after the time specified in subsection (1), but no application for such renewal shall be allowed where the application is made after the date of expiry of the licence. (3) Where the holder of the licence fails to renew the licence before the date of expiry of the licence, he shall not be entitled to make a new application for a licence within a period of two years from the date of expiry of the licence. (4) The holder of the licence shall pay the prescribed renewal fee for the licence to the Registrar upon being informed by the Registrar of the approval of his application for the renewal of the licence. Requirement to display licence 5F. (1) A moneylender shall at all times display his licence in a conspicuous place at the premise where he carries out or operates his business. (2) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both. Particulars to be shown on licences 6. (1) Every licence granted to a moneylender shall show his true name and the name under which, and the address at which, he is authorized by the licence to carry on business as such. A licence *NOTE For saving and transitional provisions of this section see subsections 46(3) and (4) of Act A1193.

14 14 Laws of Malaysia ACT 400 shall not authorize a moneylender to carry on business at more than one address or under more than one name or under any name which includes the word bank or otherwise implies that he carries on the business of banking, and no licence shall authorize a moneylender to carry on business under any name except (a) his true name; (b) the name of a firm in which he is a partner; or (c) a business name, whether of an individual or of a firm in which he is a partner, under which he or the firm has been registered under the Registration of Businesses Act 1956 [Act 197]. (2) Any licence taken out in a name other than the moneylender s true name shall be void. 7. (Deleted by Act A1193). Offences 8. If any person (a) takes out a licence in any name other than his true name; (b) being licensed as a moneylender, carries on business as such in any name other than his authorized name or at any other place than his authorized address or addresses; (c) in the course of business as a moneylender enters into any moneylending agreement with respect to any advance or repayment of money or takes any security for money otherwise than in his authorized name; or (d) lends money to a person under the age of eighteen years, he shall be guilty of an offence under this Act and shall be liable to a fine not exceeding* fifty thousand ringgit and for a second or subsequent offence shall be liable to the fine aforesaid or to imprisonment for a term not exceeding twelve months and an offender being a company, society, firm or other body of persons shall for a second or subsequent offence be liable to a fine not exceeding **one hundred thousand ringgit. *NOTE Previously one thousand ringgit see Act A1193. **NOTE Previously five thousand ringgit see Act A1193.

15 Moneylenders 15 Circumstances under which licence shall not be issued 9. (1) The licence applied for under section 5A shall not be issued (a) if (i) an applicant; (ii) a director, general manager, manager or secretary of an applicant or any other person holding a similar office or position, where the applicant is a company; (iii) a president, vice-president, secretary or treasurer of an applicant or any other person holding a similar office or position, where the applicant is a society; or (iv) a partner or any member of an applicant or any other person holding a similar office or position, where the applicant is a firm or other body of persons, is a person convicted of an offence involving fraud or dishonesty, or an offence relating to Chapter XVI or XVII of the Penal Code [Act 574], or is an undischarged bankrupt; (b) where at the time the application is made (i) an applicant; (ii) a director, general manager, manager or secretary of an applicant, where the applicant is a company; (iii) a president, vice-president, secretary or treasurer of an applicant, where the applicant is a society; or (iv) a partner or any member of an applicant, where the applicant is a firm or other body of persons, has, due to a conviction for an offence under this Act, been sentenced to a fine exceeding ten thousand ringgit or to imprisonment (other than imprisonment in default of a fine not exceeding ten thousand ringgit); (c) where at the time the application is made, a person who (i) had been a director of a company carrying on the business of moneylending or had been directly concerned in the management of the business of the company;

16 16 Laws of Malaysia ACT 400 (ii) had been a president, vice-president, secretary or treasurer of a society carrying on the business of moneylending, or had been directly concerned in the management of the business of the society; or (iii) had been a partner or any member of a firm or other body of persons carrying on the business of moneylending, or had been directly concerned in the management of the business of the firm or other body of persons, which has been wound up or dissolved by a court, is a director, president, vice-president, secretary, treasurer, partner or member, or is directly concerned in the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons, respectively; (d) where the applicant is responsible for the management of his business as a moneylender, and the licence for that business has been revoked; (e) where satisfactory evidence has been produced regarding the bad character of the applicant, or of the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons; or (f) where satisfactory evidence has been produced that the applicant, or the director, president, vice-president, secretary, treasurer, partner or member, or any person responsible for the management of the business of the applicant, where the applicant is a company, society, firm or other body of persons, is not a fit and proper person to hold a licence. (2) Any person aggrieved by the refusal of the Registrar to issue a licence may appeal to the Minister in the prescribed manner and the decision of the Minister shall be final.

17 Revocation or suspension of licence 9A. (1) If a moneylender Moneylenders 17 (a) has been carrying on his business, in the opinion of the Registrar, in a manner detrimental to the interest of the borrower or to any member of the public; (b) has contravened any of the provisions of this Act or any regulations or rules made under this Act; (c) has been licensed as a result of a fraud, mistake or misrepresentation in any material particular; or (d) has failed to comply with any of the conditions of the licence, the Registrar may, subject to section 9B, revoke the licence issued to the moneylender or suspend the licence for such period as the Registrar thinks fit. (2) A revocation or suspension of a licence under this section shall not affect any moneylending agreement entered into before such revocation or suspension, other than that in respect of which such revocation or suspension is made. (3) Where a licence has been revoked or suspended, the licence shall have no effect from the date of revocation of the licence or during the period of suspension of the licence, as the case may be. Opportunity of being heard 9B. (1) Before revoking or suspending a licence under section 9A, the Registrar shall give the holder of the licence a notice in writing of his intention to do so and require the holder of the licence to submit reasons why the licence should not be revoked or suspended. (2) After considering the reasons submitted by the holder of the licence, the Registrar shall decide whether to revoke or suspend the licence, or to take no further action, and the Registrar shall notify the holder of the licence of his decision.

18 18 Laws of Malaysia ACT 400 Appeal to Minister 9C. Any person aggrieved by any decision taken by the Registrar under section 9A may, within fourteen days after having been notified of the decision under subsection 9B(2), appeal against that decision to the Minister whose decision is final and shall not be questioned in any court. Validity of licence extended in successful appeal 9D. Where the Minister allows an appeal against the revocation or suspension of a licence under this Act, the validity of the licence shall be extended by a period corresponding to that during which the licence had no effect and such extended period shall be inserted in the licence. Prohibition of subsequent application pending appeal on earlier application 9E. (1) Where an applicant appeals against the refusal of the Registrar to issue a licence to him, or a holder of a licence appeals against the revocation of his licence by the Registrar, he shall not subsequently make an application for a licence until the appeal against the Registrar s decision has been determined by the Minister. (2) In the event that any licence is issued as a result of a subsequent application made in the circumstances specified in subsection (1), the licence so granted shall be void and shall have no effect. (3) Any person who contravenes this section shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three months or to both. Surrender of licence 9F. (1) Upon the revocation of the licence under section 9A, or the rejection of an appeal against the revocation of the licence under section 9C, the holder of the licence shall, within 14 days from the date of the notice of revocation, or the notice of rejection of appeal against revocation, being served on him, surrender his licence to the Registrar.

19 Moneylenders 19 (2) Any person who fails to surrender his licence as required under subsection (1) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. Transfer or assignment of licence prohibited 9G. (1) Subject to subsections (2) and (3), the holder of a licence shall not transfer or assign his licence to any other person, or cause or permit any other person to use his licence or provide the services authorized in the licence. (2) Except with the prior written consent of the Registrar, the holder of a licence shall not appoint any person for the purpose of exercising any of the rights conferred on him under the licence, or cause or permit any such person to exercise any such right. (3) The Registrar may authorize the transfer of a licence where (a) the holder of a licence (i) being a company, is liquidated and a receiver or manager is appointed in relation to the moneylending business of the company; or (ii) being a society, firm or other body of persons is dissolved and a receiver or manager is appointed in relation to the moneylending business of the society, firm or other body of persons; or (b) for any reason the Registrar is satisfied that it would be just to do so. (4) Except where the Registrar has given his consent or authorization under subsection (2) or (3), the holder of a licence who purports to transfer or assign his licence to any other person, or causes or permits any other person to use his licence or to provide the services authorized in the licence, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. 10. (Deleted by Act A1193).

20 20 Laws of Malaysia ACT 400 PART III INVESTIGATION, SEARCH, SEIZURE AND ARREST Powers of Inspector or police officer in investigation 10A. (1) Every Inspector or police officer making an investigation under this Act shall have the power to require information, whether orally or in writing, from any person acquainted or supposed to be acquainted with the facts and circumstances of the case under investigation. (2) Any person who, on being required by an Inspector or police officer to give information under this section, refuses to comply with such requirement or furnishes as true any information which he knows or has reason to believe to be false, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. (3) Where any information furnished by a person to an Inspector or police officer is proved to be untrue or incorrect in whole or in part, it shall be no defence to allege that the information or any part of the information was misinterpreted, or furnished inadvertently or without criminal or fraudulent intent. Power to investigate complaints and inquire into information 10B. (1) Every complaint relating to the commission of an offence under this Act may be made orally or in writing to an Inspector or police officer. (2) Where a complaint is made orally, it shall be reduced into writing and read over to the person making the complaint. (3) Every complaint, whether in writing or reduced into writing, shall be signed by the person making the complaint. (4) Every complaint, whether in writing or reduced into writing, shall be entered in a book kept at the office of the Registrar and there shall be appended to such entry the date and hour on which such complaint was made.

21 Moneylenders 21 (5) Where an Inspector or police officer has reason to suspect the commission of an offence under this Act following a complaint made under subsection (1) or information otherwise received by him, he shall cause an investigation to be made and for such purpose may exercise all the powers of investigation provided for under this Act. Power to examine persons 10C. (1) An Inspector or police officer investigating an offence under this Act may (a) order any person to attend before him for the purpose of being examined orally in relation to any matter which may, in his opinion, assist in the investigation into the offence; (b) order any person to produce before him any book, document or any certified copy of such book or document, or any other article which may, in his opinion, assist in the investigation into the offence; or (c) by written notice require any person to furnish a statement in writing made on oath or affirmation, setting out in the notice all such information which may be required, being information which, in the opinion of the Inspector or police officer, would be of assistance in the investigation into the offence. (2) A person to whom an order under paragraph (1)(a) has been given shall (a) attend in accordance with the terms of the order to be examined, and shall continue to attend from day to day as directed by the Inspector or police officer until the examination is completed; and (b) during such examination, disclose all information which is within his knowledge, or which is available to him, or which is capable of being obtained by him, in respect of the matter in relation to which he is being examined, whether or not any question is put to him with regard to such matter, and where any question is put to him he shall answer the question truthfully and to the best of his knowledge and belief.

22 22 Laws of Malaysia ACT 400 (3) A person to whom an order has been given under paragraph (1)(b) shall not conceal, destroy, alter, remove from or send out of Malaysia, or deal with, expend, or dispose of, any book, document or article specified in the order, or alter or deface any entry in any such book or document, or cause such act to be done, or assist or conspire to do such act. (4) A person to whom a written notice has been given under paragraph (1)(c) shall, in his written statement made on oath or affirmation, furnish and disclose truthfully all information required under the notice which is within his knowledge, or which is available to him, or which is capable of being obtained by him. (5) A person to whom an order or a notice is given under subsection (1) shall comply with such order or notice and with the provisions of subsection (2), (3) or (4) in relation to the order or notice, but nothing contained in subsection (2), (3) or (4) shall be construed as compelling the person who is being examined under this section to disclose any information, book, document or article which may incriminate him for any offence under this Act or any other written law. (6) An Inspector or police officer examining a person under paragraph (1)(a) shall record in writing any statement made by the person and the statement so recorded shall be signed by the person being examined or affixed with his thumbprint as the case may be, after it has been read to him in the language in which he made it and after he has been given an opportunity to make any corrections he may wish, and if such person refuses to sign the record, the Inspector or police officer shall endorse on the record under his hand the fact of such refusal and the reasons for such refusal, if any, stated by the person being examined. (7) The record of an examination under paragraph (1)(a), or a written statement on oath or affirmation made pursuant to paragraph (1)(c), or any book, document or article produced under paragraph (1)(b) or in the course of an examination under paragraph (1)(a) or under a written statement on oath or affirmation made pursuant to paragraph (1)(c) shall, notwithstanding any written law or rule of law to the contrary, be admissible in evidence in any proceedings in any court for an offence under this Act, regardless whether such proceedings are against the person who was examined, or who produced the book, document or article, or who made the written statement on oath or affirmation, or against any other person.

23 Moneylenders 23 (8) Any person who contravenes this section shall be guilty of an offence under this Act and shall on conviction be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding fifteen months or to both. Search by warrant 10D. (1) If it appears to a Magistrate, upon written information and after such inquiry as he considers necessary, that there is reasonable cause to believe that an offence under this Act has been committed or is being committed on or in respect of any premises, the Magistrate may issue a warrant authorizing an Inspector or police officer named in that warrant to enter such premises with such assistance as may be required, and if necessary by force. (2) An Inspector or police officer may, in the premises entered under subsection (1), inspect (a) any book, account or document, including computerized data, which contains or is reasonably suspected to contain any information regarding any offence suspected to have been committed under this Act; and (b) any mark, signboard, card, letter, pamphlet, item, thing, article or goods that are reasonably believed to furnish evidence regarding the commission of such offence, and may seize such book, account, document or data or any copy or extract of such book, account, document or data, or such mark, signboard, card, letter, pamphlet, item, thing, article or goods. (3) An Inspector or police officer conducting a search under subsection (1) may, if in his opinion it is reasonably necessary to do so for the purpose of investigating the offence, search any person who is in, or on, such premises and detain such person and remove him to such place as may be necessary to facilitate such search. (4) An Inspector or police officer making a search of a person under subsection (3) may seize or take possession of any book, account, document, card, letter, pamphlet, item, thing, article or goods found on the person for the purpose of the investigation being carried out by the Inspector or police officer.

24 24 Laws of Malaysia ACT 400 (5) Where, by reason of their nature, size or amount, it is not practicable to remove any book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods seized under this section, the Inspector or police officer making the seizure shall, by any means, seal such book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods in the premises or container in which they are found. (6) A person who, without lawful authority, breaks, tampers with or damages the seal referred to in subsection (5) or removes any book, account, document, mark, signboard, card, letter, pamphlet, item, thing, article or goods under seal, or attempts to do so shall be guilty of an offence under this Act and shall be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding fifteen months or to both. (7) Whenever it is necessary so to do, an Inspector or police officer exercising any power under subsection (1) may (a) break open any outer or inner door or window of any premises and enter into the premises, or otherwise forcibly enter into the premises and every part of the premises; (b) remove by force any obstruction to such entry, search, seizure, detention or removal as he is empowered to effect; or (c) detain any person found on any premises searched under subsection (1) until such premises have been searched. (8) No person shall be searched under this section except by an Inspector or police officer who is of the same gender as the person to be searched. Power of arrest 10E. If any person is found committing an offence under this Act, or is reasonably suspected of having committed, or has attempted to commit, or is about to commit, such an offence, he may be arrested by an Inspector or police officer with a warrant and shall be brought immediately before a Magistrate to be dealt with according to the law.

25 Search without warrant Moneylenders 25 10F. If the Inspector or police officer in any of the circumstances referred to in section 10D has reasonable cause to believe that by reason of delay in obtaining a search warrant under that section the investigation would be adversely affected or the evidence of the commission of the offence is likely to be tampered with, removed, damaged or destroyed, the Inspector or police officer may enter the premises and exercise in, and in respect of the premises, all the powers referred to in section 10D in as full and ample a manner as if he were authorized to do so by a warrant issued under that section. Seizure of movable property 10G. (1) In the course of an investigation into an offence under this Act, an Inspector or police officer may seize any movable property which he has reasonable grounds to suspect to be the subject matter of an offence under this Act or evidence relating to the commission of an offence under this Act. (2) The occupant of the place searched or, any person on his behalf, shall in every instance be permitted to attend during the search and a list of all movable property seized pursuant to subsection (1) and of the places in which such property are respectively found shall be prepared by the Inspector or police officer effecting the seizure and signed by him. (3) A copy of the list referred to in subsection (2) shall be served on the owner of such property or on the person from whom the property was seized as soon as possible and shall be signed by such owner or person. Further provisions relating to seizure of movable property 10H. (1) Where any movable property is seized under this Act, the seizure shall be effected by removing the movable property from the possession, custody or control of the person from whom it was seized and placing it under the custody of such person or authority and at such place as an Inspector or police officer may determine.

26 26 Laws of Malaysia ACT 400 (2) Where it is not practicable, or it is otherwise not desirable, to effect the removal of any property under subsection (1), the Inspector or police officer may leave it at the premises in which it is seized under the custody of such person as he may determine for the purpose. Obstruction of inspection and search 10I. (1) Any person who (a) refuses any Inspector or police officer access to any premises or any part of such premises, or fails to submit to a search of his person by a person authorized to search him under this Act; (b) assaults, obstructs, hinders or delays an Inspector or police officer in the execution of his duty under this Act; (c) fails to comply with any lawful demand, notice, order or requirement of an Inspector or police officer in the execution of his duty under this Act; (d) omits, refuses or neglects to give to an Inspector or police officer any information which may reasonably be required of him and which he is empowered to give; (e) fails to produce to, or conceals or attempts to conceal from an Inspector or police officer any book, account, document, data, mark, signboard, card, letter, pamphlet, item, thing, article or goods in relation to which such Inspector or police officer has reasonable grounds for suspecting that an offence under this Act has been or is being committed, or which is liable to seizure under this Act; (f) rescues or endeavours to rescue or causes to be rescued any thing which has been duly seized; or (g) destroys any thing to prevent the seizure or the securing of the thing, shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.

27 Moneylenders 27 (2) Any person who abets the commission of any offence as specified under subsection (1) shall be guilty of an offence under this Act and shall be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. (3) Any person who, while committing or abetting the commission of any offence under subsection (1) or (2), causes hurt to an Inspector, police officer or any public officer who is carrying out the enforcement of this Act shall be guilty of an offence under this Act and shall be liable to the punishment as specified in subsection (1) or (2), respectively, and to whipping. Authority to act 10J. An Inspector when acting under this Part, shall on demand, declare his office and produce to the person against whom he is acting such written authorization as the Registrar may direct to be carried by such Inspector. Release of property seized 10K. (1) Where any property has been seized under this Act, an Inspector or police officer superior in rank to the police officer who effected the seizure, may, if there is no prosecution for an offence under this Act, or upon the completion of proceedings for such offence, or if it is not otherwise required for the purpose of any proceedings under this Act, release the property to its owner, or to the person from whose possession, custody or control it was seized, or to such person who may be entitled to the property, and in such event the officer effecting the seizure, the Government, or any person acting on behalf of the Government, shall not be liable to any proceedings by any person if the seizure of the property and the release of the property had been effected in good faith. (2) A record in writing shall be made by the officer effecting any release of the property under subsection (1) in respect of such release specifying in detail the circumstances of, and the reasons for such release.

28 28 Laws of Malaysia ACT 400 PART IV EVIDENCE Evidence of accomplice and agent provocateur 10L. (1) Notwithstanding any written law or rule of law to the contrary, in any proceedings against any person for an offence under this Act (a) no witness shall be regarded as an accomplice by reason only of such witness having (i) accepted, received, obtained, solicited, agreed to accept or receive, or attempted to obtain any sum of money from a moneylender; or (ii) been in any manner concerned in the commission of such offence or having knowledge of the commission of the offence; (b) no agent provocateur, whether or not he is an Inspector or police officer, shall be presumed to be unworthy of credit by reason only of his having attempted to commit or having abetted the commission of, or having abetted or having been engaged in a criminal conspiracy to commit, such offence if the main purpose of the attempt to commit, abetment in the commission of, or abetment or engagement in the criminal conspiracy to commit, the offence was to secure evidence against such person; and (c) any statement, whether oral or written, made to an agent provocateur by such person shall be admissible as evidence at his trial. (2) Notwithstanding any written law or rule of law to the contrary, a conviction for any offence under this Act solely on the uncorroborated evidence of any accomplice or agent provocateur shall not be illegal and no such conviction shall be set aside merely because the court which tried the case has failed to refer in the grounds of its judgement to the need to warn itself against the danger of convicting on such evidence.

29 Protection of informers and information Moneylenders 29 10M. (1) Except as hereinafter provided, no complaint as to an offence under this Act shall be admitted in evidence in any civil or criminal proceedings, and no witness shall be obliged or permitted to disclose the name or address of any person who gave the information, or the substance and nature of the information received from him, or state any matter which might lead to his discovery. (2) If any application, particular, return, account, document or written statement which is given in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any person who gave the information is named or described, or which might lead to his discovery, the court before which the proceedings are held shall cause all such entries to be concealed from view or to be obliterated so far as may be necessary to protect such person from discovery, but no further. (3) If in any proceedings relating to any offence under this Act, the court, after full inquiry into the case, is of the opinion that the person who gave the information wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or is of the opinion that justice cannot be fully done between the parties to the proceedings without the discovery of the person who gave the information, the court may require the production of the original complaint, if in writing, and permit inquiry and require full disclosure concerning that person. Admissibility of statements by accused persons 10N. (1) In any trial or inquiry by a court into an offence under this Act, any statement, whether the statement amounts to a confession or not or is oral or in writing, made at any time, whether before or after the person is charged and whether in the course of an investigation or not and whether or not wholly or partly in answer to questions, by an accused person to or in the hearing of any Inspector or police officer, whether or not interpreted to him by any other Inspector or police officer or any other person, whether concerned or not in the arrest of that person, shall, notwithstanding any written law or rule of law to the contrary, be admissible at his trial in evidence and, if that person tenders himself as a witness, any such statement may be used in cross-examination and for the purpose of impeaching his credit.

30 30 Laws of Malaysia ACT 400 (2) No statement made under subsection (1) shall be admissible or used as provided for in that subsection if the making of the statement appears to the court to have been caused by any inducement, threat or promise having reference to the charge against the person, proceeding from a person in authority and sufficient in the opinion of the court to give that person grounds which would appear to him reasonable for supposing that by making it he would gain any advantage or avoid any evil of a temporal nature in reference to the proceedings against him. (3) Where any person is arrested or is informed that he may be prosecuted for any offence under this Act, he shall be served with a notice in writing, which shall be explained to him, to the following effect: You have been arrested/informed that you may be prosecuted for...(the possible offence under this Act). Do you wish to say any thing? If there is any fact on which you intend to rely in your defence in court, you are advised to mention it now. If you hold it back till you go to court, your evidence may be less likely to be believed and this may have a bad effect on your case in general. If you wish to mention any fact now, and you would like it written down, this will be done. (4) Notwithstanding subsection (3), a statement by any person accused of any offence under this Act made before there is time to serve a written notice under that subsection shall not be rendered inadmissible in evidence merely by reason of no such written notice having been served on him if such written notice has been served on him as soon as is reasonably possible after the statement was made. (5) No statement made by an accused person in answer to a written notice served on him pursuant to subsection (3) shall be construed as a statement caused by any inducement, threat or promise as is described in subsection (2), if it is otherwise voluntary. (6) Where in any criminal proceedings against a person for an offence under this Act, evidence is given that the accused, on being informed that he might be prosecuted for it, failed to mention any such fact, being a fact which in the circumstances existing at the time he could reasonably have been expected to mention when so informed, the court, in determining whether the prosecution has made out a prima facie case against the accused and in determining

31 Moneylenders 31 whether the accused is guilty of the offence charged, may draw such inferences from the failure as appear proper; and the failure may, on the basis of those inferences, be treated as, or as capable of amounting to, corroboration of any evidence given against the accused in relation to which the failure is material. (7) Nothing in subsection (6) shall in any criminal proceedings (a) prejudice the admissibility in evidence of the silence or other reaction of the accused in the face of any thing said in his presence relating to the offence in respect of which he is charged, in so far as evidence thereof would be admissible apart from that subsection; or (b) be taken to preclude the drawing of any inference from any silence or other reaction of the accused which could be drawn from that subsection. Provisions as to evidence 10O. (1) A copy of a licence, certified by the Registrar to be a true copy of such licence, shall be admissible as evidence for all purposes for which the original of such copy would have been admissible had such original been produced and admitted as evidence, without proof of the signature or authority of the person signing the licence or the copy of the licence. (2) When in any proceedings for an offence under this Act it is necessary to prove that a person was, or was not, the holder of a licence, a certificate purporting to be signed by the Registrar and certifying that the person was or was not, the holder of a licence, shall be admissible as evidence and shall constitute prima facie proof of the facts certified in such certificate, without proof of the signature or the authority of the Registrar to issue the certificate. PART V CONDUCT OF MONEYLENDING BUSINESS Moneylender and borrower must enter into a moneylending agreement *10P. (1) A moneylender who intends to lend money to a borrower shall enter into a moneylending agreement with the borrower, and that agreement shall be in the prescribed form. *NOTE For saving and transitional provisions of this section see subsections 46(5), (6) and (7) of Act A1193.